Workforce Retirements are Accelerating in the United States – Are You Prepared?
Statistics indicate more than 10,000 Americans reach the average retirement age of 65 every day. That figure is expected to peak in the summer of 2024 (referred to as “Peak 65”) to more than 12,000 a day. In a recent report from the US Chamber of Commerce, the US has 8.5 million job openings but only 6.5 million unemployed workers. Contributing factors were early retirements and less immigration.
During the third quarter of 2020, approximately 28.6 million baby boomers retired, and the number continues to grow. This significant increase in retiring workers has substantial implications for the labor market, including, but not limited to, loss of proficiency, experience, and corporate culture. Current US domestic population growth alone simply can’t cover the worker gap.
According to a recent survey conducted by the Worldwide Employee Relocation Council, 56 percent of organizations are now addressing seasoned employee retention. As companies grapple with replacing such experience, it will become increasingly important to assess the impact on your organization and develop a strategic plan to ensure continuity and minimize disruptions.
Strategies to aid your organization
Resourcing Key Personnel Through Immigration
Fostering a diverse workforce can be essential to meet the demands of the changing labor landscape and ensure a sustainable and adaptable future. Immigration plays a crucial role as a solution to bolster the workforce. The age of H1-B or L-1 Immigrants, on average, is lower than their American counterparts and is presently the primary driving force behind the country’s population growth. Increasing the number of skilled immigrants can supplement working-age Americans and the nation’s aging population.
Attracting Experienced Team Members
When looking for seasoned talent, it can be advantageous to expand the search regionally and globally. An important point is to ensure advertising is inclusive for all ages. Avoid terms such as “energetic” or “high potential,” as these can imply only younger workers should apply. Other strong incentives include offering benefits such as health and long-term care insurance. Some organizations offer a final relocation package as a bonus for those that complete a company-requested assignment or for those who remain with the company past a certain age before retiring.
Utilizing NEI Services
NEI will help you develop and manage a Final Relocation program, facilitate home sales, household goods, and assist with destination services for retirees. Our global reach supports a robust international program to relocate key talent. NEI can also manage rotational programs for future company leaders to learn from the experience of seasoned co-workers across different areas.
Organizations can bridge staffing shortages and knowledge gaps by utilizing effective, proven immigration, employment, and training programs to help transition critical knowledge and expertise to the next generations.
If you have questions or would like to discuss how NEI can help, please contact your NEI Client Relations Manager.
Additional Resources
How Workplaces Can Adapt to an Aging Workforce
What to do About Our Aging Workforce
Baby Boomers are Retiring | Implications for the Workforce and Economy
Workforce Retirements are Accelerating in the United States – Are You Prepared?
Statistics indicate more than 10,000 Americans reach the average retirement age of 65 every day. That figure is expected to peak in the summer of 2024 (referred to as “Peak 65”) to more than 12,000 a day. In a recent report from the US Chamber of Commerce, the US has 8.5 million job openings but only 6.5 million unemployed workers. Contributing factors were early retirements and less immigration.
During the third quarter of 2020, approximately 28.6 million baby boomers retired, and the number continues to grow. This significant increase in retiring workers has substantial implications for the labor market, including, but not limited to, loss of proficiency, experience, and corporate culture. Current US domestic population growth alone simply can’t cover the worker gap.
According to a recent survey conducted by the Worldwide Employee Relocation Council, 56 percent of organizations are now addressing seasoned employee retention. As companies grapple with replacing such experience, it will become increasingly important to assess the impact on your organization and develop a strategic plan to ensure continuity and minimize disruptions.
Strategies to aid your organization
Resourcing Key Personnel Through Immigration
Fostering a diverse workforce can be essential to meet the demands of the changing labor landscape and ensure a sustainable and adaptable future. Immigration plays a crucial role as a solution to bolster the workforce. The age of H1-B or L-1 Immigrants, on average, is lower than their American counterparts and is presently the primary driving force behind the country’s population growth. Increasing the number of skilled immigrants can supplement working-age Americans and the nation’s aging population.
Attracting Experienced Team Members
When looking for seasoned talent, it can be advantageous to expand the search regionally and globally. An important point is to ensure advertising is inclusive for all ages. Avoid terms such as “energetic” or “high potential,” as these can imply only younger workers should apply. Other strong incentives include offering benefits such as health and long-term care insurance. Some organizations offer a final relocation package as a bonus for those that complete a company-requested assignment or for those who remain with the company past a certain age before retiring.
Utilizing NEI Services
NEI will help you develop and manage a Final Relocation program, facilitate home sales, household goods, and assist with destination services for retirees. Our global reach supports a robust international program to relocate key talent. NEI can also manage rotational programs for future company leaders to learn from the experience of seasoned co-workers across different areas.
Organizations can bridge staffing shortages and knowledge gaps by utilizing effective, proven immigration, employment, and training programs to help transition critical knowledge and expertise to the next generations.
If you have questions or would like to discuss how NEI can help, please contact your NEI Client Relations Manager.
Additional Resources
How Workplaces Can Adapt to an Aging Workforce
What to do About Our Aging Workforce
Baby Boomers are Retiring | Implications for the Workforce and Economy
